Main Strategic Funding in gold focussed Lions Bay Assets

Metals One (AIM: MET1, OTCQB: MTOPF), a essential and valuable metals exploration and improvement firm, is happy to announce it’s making a strategic funding of as much as US$1.8 million in Lions Bay Assets (“LBR”) by means of convertible mortgage notes (“CLN”).

LBR is a South African personal firm fashioned earlier this 12 months to carry partnership property. It’s collectively owned by Lions Bay Capital Inc. (“Lions Bay”) (TSX-V: LBI) (Metals One: 19.1%) and by the Salamander Mining administration workforce (“Salamander”) headed by Graham Briggs (Non-Govt Chairman), the previous CEO of Concord Gold, South Africa’s largest gold producer and Lloyd Birrell (CEO), the founder and former CEO of Theta Gold (ASX:TGM).

LBR has secured an possibility for US$1.36 million over a big cogeneration plant situated within the Karbochem Industrial Park, Newcastle, South Africa (“Plant”). Analysis and planning has commenced round modifying the Plant to provide energy and steam while additionally roasting refractory gold concentrates, frequent to mines within the area. Metals One and LBR have lately carried out due diligence on the Plant and have agreed to use a part of the funds from the CLN to exercising the choice.

The Plant presently has the beneath specs and related infrastructure:

• 2 x 30 tonnes per hour (“TPH”) Thermax combustion boilers
• 6 MW GE-Triveni steam turbine
• The Plant is configured to take coal from native dumps and biomass as feedstock
• Boiler home, turbine, management room and motor management centre
• Compressed air plant and electrical sub-station
• Inclined conveyor to 6 silos (1,500m³ every)

The Plant was inspected and verified by Terravista Options P. Ltd in October 2025 and ascribed a substitute worth of US$39.6 million. Topic to receipt of a reliable individuals report, to be funded from the proceeds of the CLN, it’s anticipated that the Plant would require roughly US$4.5 million to restart manufacturing of steam and energy.

A big chrome smelter operation adjoining to the Plant, requiring energy and steam, has been engaged and discussions round a mutually helpful offtake settlement are underway.

Pending confirmatory analysis and research, LBR plans to reconfigure the Plant to incorporate a gold focus roasting advanced, an alternate answer to exporting gold-bearing focus from South Africa to Asian smelters. This course of has the potential to create an additional income stream for the Plant by toll processing materials from regional mines, whereas sustaining manufacturing of steam and energy. On the election of Metals One, a part of the proceeds from the CLN might be utilized to commissioning an additional technical report on the reconfiguration of the Plant to incorporate a gold roaster.

The area is host to quite a few multi-million-ounce gold deposits and tailings assets, the mining of which generate focus, all inside a 300km radius of the Plant. Along with the bigger mining complexes, there are a number of small deposits that are unable to fulfill the excessive capital necessities of standalone operations that will profit from a big centralised roasting facility reminiscent of LBR’s.

The near-term technique for LBR is to accumulate regional gold mining and tailings property as potential feedstock for the gold roaster. Metals One and LBR have been working collectively on figuring out acquisition alternatives that swimsuit the potential configuration of the Plant and gold roaster, some with substantial gold stock and mining infrastructure.

CLN

Metals One has conditionally agreed to subscribe for as much as US$1.8 million CLNs in LBR in tranches, topic to the satisfaction of sure circumstances in respect of every tranche, as beneath.

• Metals One being glad with authorized, monetary and technical due diligence on LBR and its property (together with the Plant)
• In respect of tranche 1, a technical report confirming the substitute worth of the Plant having been issued by a reliable particular person
• In respect of tranche 2, LBR and Lions Bay having entered into legally binding transaction paperwork in respect of the Plant pursuant to which LBR will purchase a 100% authorized and helpful curiosity within the Plant
• First rating safety, in agreed kind having been granted to Metals One
• The warranties and representations stay true and correct in all respects
• LBR and Lions Bay having complied with all its obligations below the settlement
• LBR having obtained shareholder and board approval, to the extent required, to subject the CLNs and to allot shares on a conversion
• No occasion of default having occurred and is continuous

It’s anticipated that tranches 1 and a pair of might be for US$175,000 and US$1.625 million respectively. Any additional tranches are to be made obtainable at Metals One’s discretion and Metals One is to have the power to require LBR to attract down quantities.

In consideration for Metals One’s subscription, LBR has agreed to subject Metals One such variety of new shares on the date of the convertible mortgage word instrument as is the same as 5% of the issued share capital of LBR on a completely diluted and enlarged foundation (“Introduction Shares”).

The CLNs are to be redeemable for money on an occasion of default or on the possibility of Metals One on first anniversary of the grant of the respective CLNs (the “Maturity Date”).

Metals One is to have the choice to transform the CLNs into probably the most beneficial class of shares within the capital of LBR in sure circumstances, together with (however not restricted to) on LBR buying the plant and on the related Maturity Date.

Assuming that Metals One advances the complete US$1.8 million to LBR, upon conversion of the CLNs, Metals One’s shareholding in LBR is to be at the least 30% of the issued share capital of LBR on a completely diluted and enlarged foundation. Till conversion or redemption, the CLN attracts a ten% coupon that compounds yearly that’s to be rolled up and develop into payable in money on the related Maturity Date or convertible into LBR shares, on the election of Metals One.

The CLNs are to be secured, amongst different issues, by first rating safety over the property of LBR.

Dan Maling, Managing Director of Metals One, commented:

“South Africa is traditionally the world’s largest gold producer, and we imagine it has the right substances of considerable assets, infrastructure and mining experience to develop into a pacesetter as soon as once more.

With the acquisition of the gold roaster and related infrastructure, alongside the skilled mining workforce at Salamander, LBR has the foundations to be a major, vertically built-in South African gold firm.

Metals One stays nicely financed with over £9 million in money and liquid investments. Our community and prepared entry to capital allows us to facilitate downstream acquisitions reminiscent of this. We look ahead to offering additional updates on the expansion alternatives with Lions Bay Assets within the coming months.”

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About Metals One

Metals One is pursuing a strategic portfolio of essential and valuable metals initiatives and investments underpinned by the Western World’s pressing want for reliably and responsibly sourced uncooked supplies – and document excessive gold costs. Metals One’s shares are listed on the London Inventory Alternate’s AIM Market (MET1) and on the OTCQB Enterprise Market in the USA (MTOPF).

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